Why Do Online Retailers Need to Create Dynamic Product Discovery?

Looking to drive up your conversion rates while also creating a better experience for your online shoppers?

Dynamic product discovery utilises advanced technologies, such as visual search, recommendation engines, and AI — to create a more personalised and engaging shopping experience for online customers.

This article explores why eCommerce retailers need to utilise dynamic product discovery and how it can drive more revenue for your store. It also highlights some successful examples of implementation.

Improve Customer Experience

Studies have shown that customer experience is crucial to the success of eCommerce retailers. Companies that provide a better online shopping experience than their competitors increase revenue and demand faster. On top of that, 73% of online shoppers consider buying experience an essential factor in purchasing decisions. Dynamic product discovery is one of the most powerful ways retailers can achieve a positive customer experience.

Delivering personalised shopping experiences can improve buyer engagement in several ways. Firstly, merchants can provide personalised recommendations and visual search results based on user behaviour and preferences — resulting in a more enjoyable and relevant search experience. Secondly, it can save online shoppers time by providing them with relevant products quickly and easily, increasing satisfaction and loyalty. Finally, dynamic product discovery can reduce frustration by minimising irrelevant search results and recommendations, leading to a better overall experience.

Industry-leading companies have led the way in implementing personalised browsing and shopping experiences with great success. For instance, Amazon and Netflix use their recommendation engines to personalise each customer’s product catalogue, contributing significantly to their conversion rate.

Increase Sales

Dynamic product discovery can have a significant impact on sales for eCommerce retailers. By providing personalised recommendations and visual search results, online retailers can increase the likelihood that customers will find and purchase the products they want. Providing truly personalised experiences can also help retailers upsell and cross-sell products by suggesting complementary items that customers may not have considered, leading to increased sales and revenue.

Studies have shown dynamic product discovery can significantly impact retailers’ business optimisation and revenue. Companies that personalise the search and discovery experience can see a 10% – 15% increase in revenue. Also, 78% of online shoppers are most likely to repurchase from (and recommend) companies that personalise.

Stay Competitive

Retail technology is a highly competitive industry, and eCommerce retailers must continually adapt to stay ahead of their market. Dynamic product discovery allows retailers to stay competitive by offering a more personalised and relevant product investigation, leading to increased user engagement and loyalty.

Zalando, a top European fashion retailer, is an excellent example of a company that stays ahead of the curve and remains competitive. Zalando uses AI-powered personalised search to provide online shoppers with a more personalised and relevant search experience.

Meet Customer Expectations

Customers now expect a seamless and personalised shopping experience across all online and in-store channels. They want retailers to understand their needs and preferences and offer personalised recommendations and promotions. Dynamic product discovery can help eCommerce retailers meet customer expectations by providing a more personalised and convenient product identification experience.

By utilising machine learning and other cutting-edge technologies, retailers can offer customers personalised recommendations, search results, and promotions, helping customers find new products they are interested in more quickly and easily. Additionally, these technologies can help retailers offer a seamless shopping experience across all channels.

Gather Valuable Data

Dynamic product discovery can also provide valuable data on customer preferences, behaviour, and buying patterns that eCommerce retailers can use to improve various aspects of the business — from product development to data analytics strategies. This data allows companies to optimise product offerings and ensure stock of the products their customers are interested in. It also allows merchants to improve marketing strategies and use insights on customer behaviour and preferences to create more targeted and effective marketing campaigns. Additionally, retailers can use the data to improve their supply chain and logistics operations, optimising inventory levels and streamlining delivery processes.

A Reliable Partner for Implementing Dynamic Product Discovery

We strongly believe online retailers should consider incorporating recommendation engines, visual search, optimisation and other product discovery technologies into their strategy — to increase conversion rates and user engagement, improve search results, enhance personalisation and relevance, and ultimately stay competitive in the fast-paced and ever-changing retail landscape.

In LION Digital, we work with the market-leading platform Nosto to meet evolving customer expectations and improve business optimisation for brands that have chosen us as their trusted eCommerce advisor. Nosto was born from the idea that every shopping experience can and should be personal. With the help of powerful machine learning and a team of global eCommerce experts, Nosto uses shopper behavioural data to design digital commerce experiences that create customers for life.

Article by

ASSELYA Sekerova –
MARKETING & PROJECT MANAGER